Legal Document Updates in English (25/2013)

FOREIGN-INVESTED PROJECT MUST HAVE INVESTMENT LICENSE
BEFORE FEBRUARY 01, 2014
 

On June 20, 2013, the XIII^th National Assembly approved formally the Law on amending and supplementing the Article 70 of the Law on Enterprise, promulgating the enterprises established before July 01, 2006.

Within that, the Foreign-invested enterprises established before July 01, 2006 whose operational duration expired prescribed in the Investment Licenses after July 01, 2006, and not yet implement procedures for enterprise dissolution and have proposal for further operation, must re-register before February 01, 2014 under Government’s conditions.   In this case, the re-registration takes effect on the expiry date of operation stated in the investment licenses;

CONDITIONS TO MAKE APPROPRIATION OF PROVISION
FOR LONG-TERM INVESTMENT
 

On June 29, 2013, the Ministry of Finance issued the Circular No. 89/2013/TT-BTC amending and supplementing the Circular No. 228/2009/TT-BTC dated December 7, 2009 of the Ministry of Finance guiding the appropriation and use of provisions for devaluation of inventories, loss of financial investments, bad receivable debts and warranty for products, goods and construction works at enterprises.

At this Circular, Capital portions currently invested by an enterprise in other economic organizations set up under law and other long-term investments for which provisions must be appropriated in case the economic organizations invested by enterprises get loss (except cases of loss anticipated in the business plans compiled before making investment). The appropriation of provision for long-term investment is performed for investments presented under method of original price, not applied to investments presented under method of equity capital in accordance with law.

MAXIMUM FINE OF VND 100 MILLION FOR VIOLATION IN
SCIENCE AND TECHNOLOGY ACTIVITIES
 

On June 27, 2013, the Government issues the Decree No. 64/2013/ND-CP promulgating the penalties for administrative violations in the science and technology activities and technology transfers.
This Decree deals with the violations, penalties, remedial measures, and authority to impose penalties for administrative violations against science and technology activities and technology transfers  and administrative violations against science and technology activities and technology transfers in this Decree are errors committed by organizations and individuals that violate the laws on state management of science activities and technology transfers, which do not constitute a criminal offence, which must incur administrative penalties. The fine for an administrative violation committed by an organization is twice as much as a fine for the same violation committed by an individual. And the maximum fine for a violation against science and technology activities and technology transfers committed byan individual is VND 50 million, and for a violation committed by an organization is VND 100 million.

REDUCTION LEVEL FROM FAMILY CONDITIONS IS INCREASED TO
VND 9 MILLION PER MONTH
 

This is an important content prescribed at the Decree No.  65/2013/ND-CP dated June 27, 2013 of the Government detailing some articles of the Law on Personal Income Tax and the Law on amending and supplementing some articles of the Law on Personal Income Tax.

Also in accordance with this Decree, Resident individuals who earn incomes from salaries or wages or business activities enjoy reduction based on family conditions from their taxable incomes before tax calculation. Level of reduction for a taxpayer himself/herself is VND 9 million/month (which is VND 108 million/year); level of reduction for each dependant of a taxpayer is VND 3.6 million/month given from the month the taxpayer's obligation to nurture the dependant arises. If the National Assembly Standing Committee adjust the levels of reduction based on family conditions as prescribed in clause 4 Article 1 of the Law amending and supplementing some articles of the Law on personal income tax, the levels as regulated by the National Assembly Standing Committee will be applied for the next tax period. Each dependant may be counted only once for tax reduction for a taxpayer in a tax year.  In case several taxpayers share a dependant they are obliged to nurture, they shall reach agreement on registration of this dependant for family circumstance-based reduction for one among them.

The Decree also states that beside the reduction from family conditions, resident individuals who earn incomes

FROM 2014, ENTERPRISE INCOME TAX IS DECREASED TO 22%
 

This is an adjustment at the Law No. 32/2013/QH13 dated June 19, 2013 of the National Assembly on amending and supplementing some articles of the Law on Enterprise Income Tax.

In particular, from April 01, 2014, the enterprise income tax rate is 22%,  the cases to which the tax rate of 22% in this Clause shall apply the tax rate of 20% from January 01, 2016.  Any enterprise of which the total revenue does not exceed 20 billion VND per year are eligible for the tax rate of 20%, the revenue used as the basis for identifying enterprises eligible for the tax rate of 20% is the revenue of the previous year. The rates of enterprise income tax on the exploration and extraction of oil and other rare resources in

APPLY 5% VAT FOR SOCIAL HOUSE
 

This is one of important content approved the National Assembly on June 19, 2013 at the Law No. 31/2013/QH13 on amending and supplementing some Articles of the Law on Valued Added Tax.

Accordingly, in order to create favorable conditions for families with medium and low incomes to approach the social houses, the National Assembly apply the tax rate of 5%  to lease, and hire purchase of social housing from July 01, 2013. At the same time, the 10% VAT on the sale, lease, and hire purchase of commercial housing, which is finished apartments smaller than 70 m2 that are sold at below 15 million VND/m2, shall be reduced by 50% from July 01, 2013 until the end of June 30, 2014.

Also in this Law, the National Assembly also supplements some objectives are not applicable to VAT tax. The tax rate of 0% is applicable to exported goods and services, international transport, goods and services that are not subject to VAT except for the cases such as transferring technologies, transferring intellectual property rights

BASIC WAGE LEVEL IS VND 1.150.000 PER MONTH
 

The Decree No.  66/2013/ND-CP which is issued by the Government on June 27, 2013 of the Government promulgating the basic wage level for cadres, civil servants, public employees and armed forces and above basic wage level shall be applied from July 01, 2013 and replaces the general minimum wage specified in documents on wage regime and other regimes involving wage of competent agencies.

Persons received basic wage levels include cadres, civil servants at from Central level to district level; cadres, civil servants at communal level; public employees in public non-business units; employees working under the labor contractual regime in agencies, units of the Party, State, socio-political organizations; employees working under the labor contractual regime in public non-business units; employees working within payroll criterion being allocated from the State budget in associations with specific characteristics; officers, professional military persons, non

SUBMIT DEPOSIT INSURANCE DOSSIER WITHIN 15 DAYS OPERATION
 

This is Government’s requirement at the Decree No. 68/2013/ND-CP detailing and guiding the implementation of the Law on Deposit Insurance.

Accordingly, within 15 (fifteen) days before the beginning day of operation, organizations participating in deposit insurance must submit full dossier requesting for grant of certificate of participating in deposit insurance; and within 05 (five) working days, after receiving full dossier requesting for grant of certificate of participating in deposit insurance, deposit insurers are responsible for grant of certificate of participating in deposit insurance.

At the same time, the Government also stipulates 03 cases for re-granting deposit insurance, in particular,  organizations are allowed to restore operation of receiving deposits of individuals by the State bank; certificates of participating in deposit insurance which are lost, torn or

CREDIT INSTITUTIONS ALLOWED TO EXPORT AND IMPORT FOREIGN CURRENCIES
 

On March 18, 2013, the Standing Committee of National Assembly issued the Ordinance No. 06/2013/UBTVQH13 dated   amending and supplementing some articles of the Ordinance on foreign exchange control.

In particular, besides that. on entry, residents and non-residents being individuals carrying foreign currency cash, Vietnamese dong cash and gold in excess of the limits stipulated by the State Bank of Vietnam must declare with the border-gate customs agencies and on exit, residents and non-residents being individuals carrying foreign currency cash, Vietnamese dong cash and gold in excess of the limits stipulated by the State Bank of Vietnam must declare with the border-gate customs agencies and present papers as prescribed by the State bank of Vietnam.  . Residents being credit institutions are entitled to implement export, import of foreign currency cash after receiving written approval of the State bank of Vietnam. The State bank of Vietnam shall provide on dossiers, orders of and

NOT SUPPLY ONLINE SECURITY TRANSACTION UNDER SPECIAL CONTROL CASE
 

On June 28, 2013, the Ministry of Finance issued the Circular No.  87/2013/TT-BTC  guiding e-transactions on the securities market including principles and procedures on e-transaction implementation in online securities trading activities and exchanging e-information relevant to security public offers, securities depository, listing, registering and trading; security company’s administration, fund management companies and securities investment companies; and information disclosure.

Securities companies wishing to be online securities trading service providers must be members of a Stock Exchange ("SE") and must connect with the trading system of SE. After connecting with the trading system of SE, securities companies must register as an online securities trading service provider with the State Securities Commission.  A securities company is not approved to provide online